Tariff classification of wires and cables remains under Heading 8544 despite use in windmills; exemption for parts rejected.

Wires and cables classifiable under Heading 8544 could not be reclassified as windmill parts under Heading 8412.90 because Section Note 2(a) of Section XVI requires goods that are themselves covered by a Chapter 84 or 85 heading to remain in that heading. Their intended use in windmills did not alter tariff classification. For the same reason, the exemption under Notification No. 205/88-C.E., as amended, did not apply, since the notification covered only the specified windmill parts entry and could not be extended to goods outside that tariff coverage. The classification adopted by the lower authorities was therefore sustained.

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Issues: (i) Whether wires and cables manufactured under Heading 8544 could be treated as parts of windmills and classified under Heading 8412.90; (ii) Whether the goods were entitled to exemption under Notification No. 205/88-C.E. as amended by Notification No. 57/95-C.E.

Issue (i): Whether wires and cables manufactured under Heading 8544 could be treated as parts of windmills and classified under Heading 8412.90

Analysis: The goods removed from the factory were wires and cables classifiable under Heading 8544. Section Note 2(a) of Section XVI of the Central Excise Tariff Act, 1985 mandates that parts which are themselves goods falling under a heading of Chapter 84 or 85 must be classified in their respective headings. Therefore, even if the goods were used as parts of windmills, they remained classifiable under Heading 8544 and could not be shifted to Heading 8412.90 as windmill parts.

Conclusion: The goods were not classifiable under Heading 8412.90 as parts of windmills.

Issue (ii): Whether the goods were entitled to exemption under Notification No. 205/88-C.E. as amended by Notification No. 57/95-C.E.

Analysis: The exemption notification covered parts of windmills as described in the relevant table, but the exemption operated only for goods falling within the specified tariff coverage. Since wires and cables remained classifiable under Heading 8544 and were not goods falling under the relevant windmill parts entry, the notification did not extend to them merely because they were intended for use in windmills.

Conclusion: The goods were not eligible for exemption under the notification.

Final Conclusion: The claim for exemption failed, and the classification adopted by the lower authorities was sustained.

Ratio Decidendi: Goods that are independently classifiable under a specific tariff heading must be classified thereunder even if intended for use as parts of another machine, and an exemption entry for parts of that machine cannot be stretched to cover them unless the notification clearly so provides.

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